Japan, ADB finance road construction in southern districts (Economy)

Published on Oct 30 2008 // Main News

New Delhi, October 31 : Japan and the Asian Development Bank (ADB) have announced funding to Bhutan to help prepare a feasibility study for a road project that will ensure more balanced and sustainable economic expansion and poverty reduction in the less developed southern part of the country.

The Japan Special Fund, through ADB, will provide a US$ 650,000 grant for the feasibility study, while Bhutan will use its internal resources of US$ 165,000 to complete funding requirement.

The feasibility study will focus on a national highway in the southern corridor, as well as feeder roads in the middle of the corridor. The study will be the basis of a road project design for possible loan financing.

“Most of the poor, especially in rural areas, feel that the government should prioritize road infrastructure and bridges to improve their living conditions,” said Arto Ahonen, Transport Specialist of ADB’s South Asia Department. Bhutan News Service